Abstract. This paper addresses decentralized exponential stability problem for a class of nonlinear large-scale systems with time-varying delay in interconnection is considered. The time delay is any continuous function belonging to a given interval, but not necessary to be differentiable. By constructing a suitable augmented Lyapunov-Krasovskii functional combined with Leibniz-Newton's formula, new delay-dependent sufficient conditions for the existence of decentralized exponential stability is established in terms of LMIs.